Redhawk finds deep breccia at Copper Creek (March 31, 2008)

VANCOUVER–Exploration drilling is returning long, strong intercepts for Redhawk Resources (RDK-V, RHWKF-O) as the company steps out from the five defined zones at its Copper Creek project to probe a few of the over 400 known breccia pipes on the property.

The 12-sq.-km Copper Creek project, located some 100 km northeast of Tuscon, in Arizona, has seen more than 340 drill holes to delineate five copper-dominated deposits amidst a shower of breccia and porphyry showings. Explorers and miners have been in the area since the early 1900s, focused primarily on outcropping deposits. Now, Redhawk is searching for buried zones.

Redhawk recently sunk several angle core drill holes into the Copper Prince breccias, two zones some 60 metres apart and only 340 metres north of the planned exploration decline portal site. Hole 36 cut the highest-grade interval, returning 41 metres grading 5.1% copper, 0.002% molybdenum, 0.06 gram gold per tonne and 5 grams silver from 25 metres depth, including 21 metres grading 7.67% copper, 0.002% molybdenum, 0.06 gram gold and 5 grams silver.

Hole 33 produced the longest mineralized intercept, returning 53 metres grading 2.27% copper, 0.002% molybdenum, 0.03 gram gold and 2.81 grams silver from 21 metres. And hole 37 cut 42 metres grading 3.33% copper, 0.002% molybdenum, 0.06 gram gold and 2.2 grams silver from 35 metres, including 8.5 metres of 5.55% copper, 0.002% molybdenum, 0.06 gram gold and 9.1 grams silver.

The Copper Prince breccia bodies are roughly circular and have much larger vertical extents than lateral spread. As such, drills were collared at various locations around the breccias and pointed in varying directions and angles, and so intercepts do not represent true widths.

The Copper Prince and nearby Globe breccias have minimal historical underground workings, having seen minor production and historical drilling. None have resources defined as yet.

In other exploration drilling, Redhawk collared hole 15 between the large American Eagle porphyry zone and the layered Mammoth breccia and Keel sheeted vein and stockwork zones. On first inspection, the core showed over 300 metres of visible copper mineralization. In fact, it returned 256 metres grading 1.4% copper, 0.033% molybdenum, 0.09 gram gold and 8.4 grams silver from 850 metres below surface, followed by 46 metres grading 0.31% copper, 0.005% molybdenum, 5 grams gold and 11 grams silver.

Results from hole 15 plus several previous drill holes in the Keel area suggest a large, deep breccia body has been found. The top of the breccia lies at least 600 metres below surface; to date it has been traced for 460 metres depth, and is still open. This new body is larger than the Mammoth breccia, located roughly 100 metres north, and indicates potential for additional deep mineralization in the area.

The Copper Creek project currently hosts five zones of defined resources. The largest by far is the American Eagle zone, a porphyry body that hosts 99.8 million tonnes grading 0.7% copper and 0.014% molybdenum, and is still open on three sides and at depth.

Northwest of American Eagle, the Mammoth breccia zone sits on top of the Keel zone, which, like American Eagle is made up of sheeted veins, veinlets, and stockworks. To the north lies the Childs-Aldwinkle breccia zone; to the northwest, the Old Reliable breccia zone. Together these four zones contain measured and indicated resources of 5.8 million tonnes grading 1.51% copper, 0.019% molybdenum, 0.085 gram gold and 0.28 gram silver, as well as 3.2 million inferred tonnes grading 1.4% copper, 0.034% molybdenum, 0.14 gram gold and 1.4 grams silver.

In October, Redhawk applied for an underground exploration licence, with plans to develop an exploration decline linking the Childs-Aldwinkle and Mammoth zones. The decline would be sized so as to be appropriate for production. Redhawk expects the permitting process to take six to 12 months.

The company plans to update the resource estimate for the four smaller zones in the coming months and to complete a scoping study for the project by the end of the year.

News of the Copper Prince intercepts gave Redhawk a 5 boost to close at 53. The company has a 52- week trading range of 33.5-79 and has 68.2 million shares issued.